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FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 1-225
KIMBERLY-CLARK CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 39-0394230
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 619100, Dallas, Texas 75261-9100
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 830-1200
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
- ------------------------------------------------ ------------------------
Common Stock - $1.25 Par Value; Preferred Share New York Stock Exchange
Purchase Rights Chicago Stock Exchange
Pacific Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X . No .
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements incor-
porated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]
As of March 18, 1994, 161,014,091 shares of common stock were
outstanding, and the aggregate market value of the common stock
on such date (based on the closing price of these shares on the
New York Stock Exchange) of Kimberly-Clark Corporation held by
nonaffiliates was approximately $9,138 million.
(Continued)
FACING SHEET
(Continued)
Documents Incorporated By Reference
Kimberly-Clark Corporation's 1993 Annual Report to Stockholders
and 1994 Proxy Statement contain much of the information
required in this Form 10-K, and portions of those documents are
incorporated by reference from the applicable sections of those
reports. The following chart identifies the sections of the
Corporation's 1993 Annual Report on Form 10-K which incorporate
by reference portions of the Corporation's 1993 Annual Report
to Stockholders or portions of the 1994 Proxy Statement. The
Items of this Form 10-K, where applicable, specify which
portions of such documents are incorporated by reference. The
portions of such documents that are not incorporated by
reference herein shall not be deemed to be filed with the
Commission as part of this Form 10-K.
Document of Which Portions Parts of this Form 10-K
are Incorporated by Reference in Which Incorporated
- ------------------------------------------------ -----------------------------------------------
1993 Annual Report to Stockholders Part I
(Year ended December 31, 1993) Item 1. Business
Part II
Item 5. Market for the Registrant's
Common Stock and Related Stockholder
Matters
Item 7. Management's Discussion and
Analysis of Financial Condition and
Results of Operation
Item 8. Financial Statements and
Supplementary Data
Part IV
Item 14. Exhibits, Financial Statement
Schedules, and Reports on Form 8-K
1994 Proxy Statement Part III
Item 10. Directors and Executive
Officers of the Registrant
Item 11. Executive Compensation
Item 12. Security Ownership of
Certain Beneficial Owners and
Management
Item 13. Certain Relationships and
Related Transactions
PART I
ITEM 1. BUSINESS
Kimberly-Clark Corporation was incorporated in Delaware in
1928. As used in Items 1, 2 and 7 of this Form 10-K Annual
Report, the term "Corporation" refers to Kimberly-Clark
Corporation and its consolidated subsidiaries. In the
remainder of this Form 10-K Annual Report, the terms "Kimberly-
Clark" or "Corporation" refer to Kimberly-Clark Corporation.
Financial information about product classes and results, and
foreign and domestic operations, and information about
principal products and markets of the Corporation, contained
under the caption "Management's Discussion and Analysis" and in
Note 12 to the Financial Statements contained in the 1993
Annual Report to Stockholders, are incorporated in this Item 1
by reference.
Description of the Corporation. Kimberly-Clark is principally
engaged in the manufacturing and marketing throughout the world
of a wide range of products for personal, business and
industrial uses. Most of these products are made from natural
and synthetic fibers using advanced technologies in absorbency,
fibers and nonwovens.
The Corporation's products and services are segmented into
three classes.
Class I includes tissue products for household, commercial,
institutional and industrial uses; infant, child, feminine and
incontinence care products; industrial and commercial wipers;
health care products; and related products. Class I products
are sold under a variety of well-known brand names, including
Kleenex, Huggies, Pull-Ups, Kotex, New Freedom, Lightdays,
Depend, Poise, Hi-Dri, Delsey, Spenco, Kimguard and Kimwipes.
Products for home use are sold through supermarkets, mass
merchandisers, drugstores, warehouse clubs, home health care
stores, variety stores, department stores and other retail
outlets, as well as to wholesalers. Other products in this
class are sold to distributors, converters and end-users.
Pulp produced by the Corporation, including amounts sold to
other companies, is included in Class I, except for pulp
manufactured for newsprint and certain specialty papers which
is included in Class II.
Class II includes newsprint, printing papers, premium business
and correspondence papers, tobacco industry papers and
products, technical papers, and related products.
Newsprint and groundwood printing papers are sold directly to
newspaper publishers and commercial printers. Other papers and
specialty products in this class are sold directly to users,
converters, manufacturers, publishers and printers, and through
paper merchants, brokers, sales agents and other resale agencies.
PART I
(Continued)
ITEM 1. BUSINESS (Continued)
Class III includes aircraft services, commercial air
transportation and other products and services.
The Corporation owns various patents and trademarks registered
domestically and in certain foreign countries. The Corporation
considers the patents and trademarks which it owns and the
trademarks under which it sells certain of its products, in
each instance in the aggregate, to be material to its business.
Consequently, the Corporation seeks patent and trademark
protection by all available means, including registration. A
partial list of the Corporation's trademarks is included under
the caption "Trademarks" contained in the 1993 Annual Report to
Stockholders and is incorporated herein by reference.
EMPLOYEES. In its worldwide consolidated operations, the
Corporation had 42,131 employees as of December 31, 1993.
RAW MATERIALS. Cellulose fibers in the form of wood pulp are
the primary raw material for the Corporation's paper and tissue
products and are important components in disposable diapers,
training pants, feminine pads and incontinence care products.
Certain specialty papers are manufactured with other cellulose
fibers such as flax straw and cotton. Large amounts of
secondary and recycled fibers are also consumed, primarily in
tissue products. Superabsorbent materials are important
components in disposable diapers, training pants and
incontinence care products. Polypropylene and other synthetics
are primary raw materials for manufacturing nonwoven fabrics
which are used in disposable diapers, training pants, feminine
pads, incontinence and health care products and industrial
wipers. Most secondary fibers and all synthetics are
purchased. Wood pulp and nonwood cellulose fibers are produced
by the Corporation and purchased from others. The Corporation
considers the supply of such raw materials to be adequate to
meet the needs of its businesses.
For its worldwide consolidated operations, the Corporation's
pulp mills at Coosa Pines, Alabama, and Terrace Bay, Ontario,
had the capacity to supply about two-thirds of the 1993 wood
pulp requirements for products other than newsprint. The
Corporation's newsprint mill at Coosa Pines produces
substantially all of its own pulp requirements.
The Corporation owns or controls 5.1 million acres of
forestland in North America, primarily as a source of fiber for
pulp production. Approximately .4 million acres are owned and
4.7 million acres, principally in Canada, are held under long-term
Crown rights or leases.
Certain states have adopted laws and entered into agreements
with publishers requiring newspapers sold in such states to
contain specified amounts of recycled paper. The Corporation
provides certain newspaper publishers with newsprint containing
specified amounts of recycled paper.
COMPETITION. The Corporation competes in numerous domestic and
foreign markets. The number of competitors and the Corpora-
tion's competitive positions in those markets vary. In
general, in the sale of its principal products, the Corporation
faces strong competition from other manufacturers, some of
which are larger and more diversified than the Corporation.
The Corporation has one major competitor, and several regional
competitors, in its disposable diaper business and several
major competitors in its household and other tissue-based
products, and feminine and incontinence care products
businesses.
During 1993, in the U.S., private label and economy branded
competitors continued to expand distribution of their
disposable training pants nationally in competition with the
Corporation's training pants business, and, in the fourth
quarter, a major competitor initiated regional introductions of
a branded training pant. In foreign markets, the Corporation
has encountered increased competition and expects to encounter
significant competition in connection with its introduction of
training pants and diapers in Europe. Depending on the
characteristics of the market involved, the Corporation com-
petes on the basis of product quality and performance, price,
service, packaging, distribution, advertising and promotion.
RESEARCH AND DEVELOPMENT. At year-end 1993, approximately
1,200 of the Corporation's employees were engaged in research
and development activities and were located in Neenah,
Wisconsin; Roswell, Georgia; Coosa Pines, Alabama; Troy, Ohio;
Munising, Michigan; Waco, Texas; the United Kingdom; and
France. A major portion of total research and development
expenditures is directed toward new or improved personal care,
health care, household products, and nonwoven materials.
Consolidated research and development expenditures were $158.5
million in 1993, $156.1 million in 1992 and $148.8 million in
1991.
ENVIRONMENTAL MATTERS. Capital expenditures for environmental
controls to meet legal requirements and otherwise relating to
the protection of the environment at the Corporation's
facilities in the United States are estimated to be $54 million
in 1994 and $15 million in 1995. Such expenditures are not
expected to have a material effect on the Corporation's total
capital expenditures, consolidated earnings or competitive
position; however, these estimates could be modified as a
result of changes in the Corporation's plans, changes in legal
requirements or other factors.
RISKS FOR FOREIGN OPERATIONS. The products of the Corporation
and its equity companies are made in 21 countries outside the
U.S. Consumer products made abroad or in the U.S. are marketed
in approximately 150 countries. Because these countries are so
numerous, it is not feasible to generally characterize the
risks involved. Such risks vary from country to country and
include such factors as tariffs, trade restrictions, changes in
currency value, economic conditions and international
relations.
INSURANCE. The Corporation maintains coverage consistent with
industry practice for most risks that are incident to its
operations.
ITEM 2. PROPERTIES
Management believes that the Corporation's production
facilities are suitable for their purpose and adequate to
support its businesses. The extent of utilization of
individual facilities varies, but generally they operate at or
near capacity. New facilities of the Corporation are under
construction and others are being expanded. Principal
facilities and products or groups of products made at these
facilities are listed on the following pages. In addition, the
principal facilities of the Corporation's equity companies and
the products or groups of products made at such facilities are
included on the following pages. Products described as
consumer, service and/or nonwoven products include tissue
products for household, commercial, institutional and
industrial uses; infant, child, feminine and incontinence care
products; industrial and commercial wipers; health care
products; and related products.
PART I
(Continued)
ITEM 2. PROPERTIES (Continued)
Headquarters Locations
Dallas, Texas
Roswell, Georgia
Neenah, Wisconsin
Administrative Center
Knoxville, Tennessee
Production and Service Facilities
United States
Alabama
Ashville - Wood chips
Coosa Pines - Newsprint, groundwood printing papers, pulp,
seedling nursery
Goodwater - Lumber
Nixburg - Wood chips
Roanoke - Wood chips
Westover - Lumber
Arizona
Tucson - Nonwoven products
Arkansas
Conway - Consumer products
Maumelle - Consumer products
California
Fullerton - Consumer products
Connecticut
New Milford - Consumer products
Georgia
LaGrange - Nonwoven materials and products
Massachusetts
Lee - Tobacco industry papers, thin papers, service products
Westfield - Aviation services
Michigan
Munising - Printing and base papers
Mississippi
Corinth - Nonwoven materials, service products
New Jersey
Montvale - Aviation services
Spotswood - Tobacco industry papers and products
New York
Ancram - Tobacco industry papers and products
North Carolina
Hendersonville - Nonwoven materials and products
Lexington - Nonwoven materials and products
Ohio
Troy - Adhesive-coated products
Oklahoma
Jenks - Consumer products
South Carolina
Beech Island - Consumer and service products
Tennessee
Loudon - Service products
Memphis - Consumer and service products
Texas
Dallas - Aviation services
Paris - Consumer products
Waco - Consumer and service products
Utah
Ogden - Consumer products
Wisconsin
Appleton - Aviation services
Milwaukee - Commercial airline service
Neenah - Consumer and service products, nonwoven materials,
business and correspondence papers
Whiting - Business and correspondence papers
Outside the United States
Australia
*Albury - Nonwoven materials and products
*Ingleburn (near Sydney) - Consumer products
*Lonsdale (near Adelaide) - Consumer products
*Millicent - Consumer and service products
*Seven Hills (near Sydney) - Consumer and service products
*Tantanoola - Pulp
*Warwick Farm (near Sydney) - Consumer and service products
Brazil
Mogi das Cruzes (near Sao Paulo) - Consumer and service
products
Canada
Huntsville, Ontario - Consumer and service products
Rexdale, Ontario (near Toronto) - Consumer and service
products
St. Catharines, Ontario - Consumer and service products,
base papers
St. Hyacinthe, Quebec - Consumer products
Terrace Bay, Ontario - Pulp
Winkler, Manitoba (mobile operations) - Flax tow
Colombia
*Barbosa (near Medellin) - Tobacco industry papers, service
products
*Guarne (near Medellin) - Consumer and service products
*Pereira - Consumer and service products, nonwoven materials
Costa Rica
Cartago - Consumer products
El Salvador
Sitio del Nino (near San Salvador) - Consumer and service
products
France
Le Mans - Tobacco industry products
Malaucene - Tobacco industry papers
Quimperle - Tobacco industry papers
Rouen - Consumer products
Villey-Saint-Etienne - Consumer products
Germany
Koblenz - Consumer and service products
*Equity company production facility
PART I
(Continued)
ITEM 2. PROPERTIES (Continued)
Honduras
Cortes - Nonwoven products
Indonesia
*Medan - Tobacco industry papers
Korea
Anyang (near Seoul) - Consumer and service products
Kimcheon (near Taegu) - Consumer and service products
Taejon - Consumer products
Malaysia
*Petaling Jaya (near Kuala Lumpur) - Consumer and service
products
Mexico
*Bajio (near San Juan del Rio) - Consumer and service
products; business, printing and school papers
*Cuautitlan (near Mexico City) - Consumer and service
products
Empalme - Nonwoven products
Hermosillo - Nonwoven products
Magdalena - Nonwoven products
*Naucalpan (near Mexico City) - Consumer and service
products; business, printing and school papers; tobacco
industry papers; pulp
Nogales - Nonwoven products
*Orizaba - Consumer and service products; business, printing
and school papers; pulp
*Ramos Arizpe - Consumer products
Santa Ana - Nonwoven products
Netherlands
Veenendaal - Consumer and service products
Panama
Panama City - Consumer and service products
Philippines
San Pedro, Laguna (near Manila) - Consumer and service
products, tobacco industry papers
Saudi Arabia
*Al-Khobar - Consumer and service products
Singapore
Singapore - Consumer and service products
South Africa
**Cape Town - Consumer and service products
**Germiston (near Johannesburg) - Consumer and service
products
**Springs (near Johannesburg) - Consumer and service products
Thailand
Patumthanee (near Bangkok) - Consumer and service products
United Kingdom
Barton-upon-Humber - Consumer products
Flint - Nonwoven materials, service products
Larkfield (near Maidstone) - Consumer and service products
Prudhoe (near Newcastle-upon-Tyne) - Consumer and service
products, recycled fiber
Sealand (near Chester) - Consumer products
Venezuela
Guacara - Consumer products
* Equity company production facility
** Other companies
ITEM 3. LEGAL PROCEEDINGS
The following is a brief description of material pending legal
proceedings to which the Corporation or any of its subsidiaries
is a party or of which any of their properties is subject:
A. On March 11, 1993, a class action lawsuit was filed against
the Corporation in the United States District Court, Middle
District of Tennessee (the "Tennessee District Court"), on
behalf of certain retirees who were formerly represented by
the United Paperworkers International Union ("UPIU"). The
Corporation's Motion to Transfer this action to the Eastern
District of Wisconsin was granted.
A similar action was filed in the United States District
Court, Central District of California, on behalf of retirees
who were formerly represented by the Association of Western
Pulp and Paper Workers ("AWPPW") at the Corporation's
Fullerton, California facility. This second action was
voluntarily dismissed and refiled in the Tennessee District
Court on March 25, 1993. The Corporation's Motion to
Transfer this action to the Central District of California
was granted.
The parties to both actions have executed settlement agreements,
dated March 15, 1994, providing for the voluntary dismissal of
such actions, without prejudice, for a period of one year from
the date that such agreements are approved by the respective
courts, subject to certain conditions and circumstances
allowing for the earlier refiling of such actions. On March 23, 1994,
the court for the Eastern District of Wisconsin entered an order
approving the settlement agreement with respect to the UPIU
action. The settlement agreement with respect to the AWPPW
action has been submitted to the court for the Central
District of California for its consideration.
The actions relate to certain changes made by the
Corporation to its retiree medical plans effective January
1, 1993. The allegations in each action are that the
Corporation's retiree medical benefits were vested and could
not be unilaterally amended by the Corporation, and that,
therefore, the retirees are entitled to an unalterable level
of medical benefits. In the event that the AWPPW settlement
agreement is not approved by the court, or the
actions are refiled pursuant to the terms of the settlement
agreements, management has determined that under Financial
Accounting Standard No. 106, and based on prevailing market
interest rates, the estimated cost to the Corporation of not
being able to make any amendments to its retiree medical
plans with respect to the two putative classes of retirees
would result in a maximum pretax charge of approximately
$5.7 million per year.
B. Since September 28, 1990, about 60 employees of contractors
who allegedly worked at the Corporation's mill in Coosa
Pines, Alabama at some point in their careers filed separate
actions in the United States District Court for the Northern
District of Texas against the Corporation and approximately
36 other companies. Most of these cases were transferred to
the Federal District Court, Northern District of Alabama and
subsequently have been consolidated in the Federal District
Court, Eastern District of Pennsylvania where all asbestos
cases pending at such time in United States Federal District
Courts were consolidated. Approximately 4,713 individuals
refiled three of such cases in the District Court of Orange
County, Texas. The actions allege, with respect to the
Corporation, that the ownership of facilities containing
asbestos caused the plaintiffs to suffer physical injury.
The actions seek unspecified damages. The Corporation has
denied the allegations and has asserted, among other things,
that the claims fail to state a claim upon which relief can
be granted and that such actions are barred by applicable
statutes of limitation. These actions presently are in the
discovery phase.
PART I
(Continued)
ITEM 3. LEGAL PROCEEDINGS (Continued)
C. On September 28, 1992, the Corporation filed an action
against Drypers Corporation, Pope & Talbot, Inc. and Pope &
Talbot, Wis., Inc. in the United States District Court,
Western District of Washington, alleging patent infringement
with respect to the defendants' use of containment flaps in
disposable diapers. In June 1993, each of the defendants
filed counterclaims against the Corporation alleging that
the Corporation misused its patent in violation of the
federal antitrust laws. The defendants are seeking
invalidation of the patent, treble damages based on the
defendants' attorneys fees for defending the patent suit,
and the defendants' attorney fees for prosecuting the
antitrust counterclaim. The case is currently in discovery.
A trial date has been set for June 7, 1994.
The Corporation also is subject to routine litigation from time
to time which individually or in the aggregate is not expected
to have a material adverse effect on the Corporation's business
or results of operations.
Environmental Matters
- ---------------------
(See the Corporation's 1993 Annual Report to Stockholders under
the "Environmental Matters" section of "Management's Discussion
and Analysis.")
The Corporation has been named a potentially responsible party
("PRP") under the provisions of the federal Comprehensive
Environmental Response, Compensation and Liability Act
("CERCLA"), or analogous state statute, at 21 waste disposal
sites, none of which, in management's opinion, could have a
material adverse impact on the Corporation's business or
results of operations. Notwithstanding its opinion, management
believes it appropriate to disclose the following recent
developments concerning three of these sites where the extent
of the Corporation's liability cannot yet be established:
A. The South 8th Street Landfill Site, located across the
Mississippi River from Memphis, Tennessee, in Crittenden
County, Arkansas, is a 30-acre site that received municipal
and industrial waste from the 1950's to the early 1980's.
The site is divided into three separate landfill disposal
areas and an oily sludge pit area. A refining company (the
"Refiner") apparently used the pit area for the disposal of
waste sludge from its oil re-refining process through
November 1969.
On September 9, 1992, the Environmental Protection Agency
(the "EPA") identified Kimberly-Clark's Memphis mill as a
PRP at the site. The mill was linked to the site by an
affidavit of an employee of the Refiner which alleged that
the Refiner picked up waste oil at the mill for re-refining.
While Kimberly-Clark did not send hazardous wastes to the
site, it did send used oil to the Refiner for reclamation.
The EPA recently conducted a Remedial Investigation and
Feasibility Study with respect to the site. Based on such
study, the EPA's preferred remedial alternative for the
landfill area is organic treatment, stabilization and
disposal in a licensed, nonhazardous landfill at a cost of
$14.8 million to $18.1 million. The EPA's preferred
remedial alternative for the oily sludge pit is natural soil
cover at a cost of $2.3 million. There are approximately
103 members, including Kimberly-Clark, of the PRP group with
respect to the site. The Corporation's estimated share of
total site remediation cost, if any, cannot yet be
established.
B. In August 1992, Kimberly-Clark's Spotswood, New Jersey mill
received an information request from the New Jersey
Department of Environmental Protection and Energy ("NJDEPE")
with respect to the Jones Industrial Service Landfill.
Kimberly-Clark currently has no information about the site
or the status of the NJDEPE's actions to date. Kimberly-
Clark does not have records indicating that the mill used
the site. However, the Spotswood mill has used an
industrial company for nonhazardous waste disposal services
and has received routing sheets from such company which
indicate that the company may have sent three loads of
Spotswood mill waste to the site in September 1980. Until
Kimberly-Clark receives the site information requested from
the State of New Jersey, no determination regarding the
extent of Kimberly-Clark's liability, if any, can be made.
C. On February 6, 1991, the NJDEPE identified the Corporation
as a PRP under the provisions of the New Jersey Spill
Compensation and Control Act for remediation of the Global
Sanitary Landfill waste disposal site located in Old Bridge
Township, New Jersey based on the Corporation's disposal of
waste at such site. The EPA has designated the disposal
site as a state-led site under CERCLA with the NJDEPE acting
as lead agency. In May 1991, the Corporation signed a PRP
agreement and paid an administrative assessment. In August
1993, a consent decree was executed by the State of New
Jersey and the PRPs, pursuant to which the Corporation
agreed to pay $575,000 for its share of Phase I cleanup
costs. The Corporation's share of Phase II cleanup costs,
if any, cannot yet be established.
PART I
(Continued)
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during
the fourth quarter of 1993.
EXECUTIVE OFFICERS OF THE REGISTRANT
The names and ages of the executive officers of the Corporation
as of March 1, 1994, together with certain biographical
information are as follows:
JAMES D. BERND, 60, was elected Executive Vice President
effective December 1, 1990. Mr. Bernd joined Kimberly-Clark in
1959 as a trainee at the Niagara Falls, New York, mills. He
was appointed Marketing Manager for KLEENEX(R) facial tissue in
1973 and Business Manager for Household Products in 1975. Mr.
Bernd was appointed Division Vice President in 1976, President
of the Household Products Sector in 1985 and assumed his
present position in 1990. He is responsible for the Household
Products and Service and Industrial Sectors, U.S. Consumer
Sales, Consumer Business Services and Safety and Quality
Assurance. Mr. Bernd is a member of the University of
Wisconsin School of Business Board of Visitors, the Riverside
Medical Center - Waupaca Board of Trustees, and the Associated
Bank, National Association Board of Directors. He has been a
director of the Corporation since 1990.
JOHN W. DONEHOWER, 47, was elected Senior Vice President and
Chief Financial Officer in 1993. Mr. Donehower joined
Kimberly-Clark in 1974. He was appointed Director of Finance -
Europe in 1978, Vice President, Marketing and Sales - Nonwovens
in 1981, Vice President, Specialty Papers in 1982, Managing
Director, Kimberly-Clark Australia Pty. Limited in 1982, and
Vice President, Professional Health Care, Medical and Nonwoven
Fabrics in 1985. He was appointed President, Specialty
Products - U.S. in 1987, and President - World Support Group in
1990.
O. GEORGE EVERBACH, 55, was appointed Senior Vice President -
Law and Government Affairs in 1988. Mr. Everbach joined Kimberly-Clark
in 1984. His responsibilities within the Corporation have included
direction of legal, human resources and administrative functions. He
was elected Vice President and General Counsel in 1984, Vice President,
Secretary and General Counsel in 1985, and Senior Vice President and
General Counsel in 1986.
THOMAS J. FALK, 35, was elected Group President - Infant and
Child Care in 1993. Mr. Falk joined Kimberly-Clark in 1983.
His responsibilities within the Corporation have included
internal audit, financial and strategic analysis and operations
management. He was appointed Vice President - Operations
Analysis and Control in 1990 and Senior Vice President -
Analysis and Administration in 1992.
JAMES G. GROSKLAUS, 58, was elected Executive Vice President
effective December 1, 1990. He is responsible for the Pulp and
Newsprint, Paper and Specialty Products Sectors, and also is
responsible for various staff functions. Employed by the
Corporation since 1957, Mr. Grosklaus was appointed Vice
President in 1972 and Divisional Vice President in 1975, and
was elected Senior Vice President effective January 1, 1979.
He was appointed President, K-C Health Care, Nonwoven and
Industrial Group in 1981, Senior Staff Vice President in 1982,
Senior Vice President in 1983 and President, Technical Paper
and Specialty Products in 1985, and elected Executive Vice
President in January 1986. In 1988, he was appointed President
- - North American Pulp and Paper Sector. He is a member of the
Emory University Board of Visitors and the Woodruff Arts Center
Board of Trustees. He has been a director of the Corporation
since 1987.
EXECUTIVE OFFICERS OF THE REGISTRANT (Continued)
TIMOTHY E. HOEKSEMA, 47, was appointed President -
Transportation Sector in 1988. Mr. Hoeksema joined Kimberly-
Clark in 1969. Prior to 1977, Mr. Hoeksema served as Chief
Pilot of Kimberly-Clark. He was elected President of K-C
Aviation Inc., a wholly owned subsidiary of Kimberly-Clark, in
1977, and President of Midwest Express Airlines, Inc., a wholly
owned subsidiary of K-C Aviation Inc., in 1983.
JAMES T. MCCAULEY, 55, was elected Executive Vice President in
1990. Mr. McCauley joined Kimberly-Clark in 1969. He was
elected Treasurer in 1980, Vice President and Treasurer in
1980, appointed Vice President - Nonwoven Operations in 1984,
Senior Vice President, Kimberly-Clark Newsprint & Pulp and
Forest Products in 1984, President, North American Pulp and
Newsprint Sector in 1985, President, Health Care and Nonwovens
Sector in 1987, and President - Nonwovens and Technical
Products Sector in 1988. Mr. McCauley was appointed President -
Nonwovens, Medical and Technical Products Sector in 1988 and
was appointed President - Nonwovens and Professional Health
Care Sector, Far East Operations and World Support Group in
1990.
WAYNE R. SANDERS, 46, was elected Chief Executive Officer of
the Corporation effective December 19, 1991, and Chairman of
the Board effective March 31, 1992. He previously had been
elected President and Chief Operating Officer in December 1990.
Employed by the Corporation in 1975, Mr. Sanders was appointed
Vice President of Kimberly-Clark Canada Inc., a wholly owned
subsidiary of the Corporation, in 1981. He held various
positions in that company, and was appointed Director and
President in 1984. Mr. Sanders was elected Senior Vice
President of Kimberly-Clark Corporation in 1985 and was
appointed President - Infant Care Sector in 1987, President -
Personal Care Sector in 1988 and President - World Consumer,
Nonwovens and Service and Industrial Operations in 1990. He is
a member of the Lawrence University Board of Trustees and the
Marquette University Board of Trustees. He has been a director
of the Corporation since 1989.
KATHI P. SEIFERT, 44, was elected Group President - Feminine
and Adult Care effective January 7, 1994. Ms. Seifert joined
Kimberly-Clark in 1978. Her responsibilities in the
Corporation have included various marketing positions within
the Service and Industrial, Consumer Tissue and Feminine
Products business sectors. She was appointed President -
Feminine Care Sector, in 1991.
JOHN A. VAN STEENBERG, 46, was elected President - European
Consumer and Service & Industrial Operations effective January
1, 1994. Mr. Van Steenberg joined Kimberly-Clark in 1978. His
previous responsibilities have included operations and major
project management. He was appointed Managing Director of
Kimberly-Clark Australia Pty. Limited in 1990.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
STOCKHOLDER MATTERS
The dividend and market price data included in Note 11 to the
Financial Statements, and the information covered by the
captions "Dividends and Dividend Reinvestment Plan" and "Stock
Exchanges" contained in the 1993 Annual Report to Stockholders
are incorporated in this Item 5 by reference.
As of March 18, 1994, the Corporation had 25,121 stockholders
of record.
ITEM 6. SELECTED FINANCIAL DATA
(Millions of dollars Year Ended December 31
-----------------------------------------------------
except per share amounts) 1993 1992 1991 1990 1989
- ----------------------------------------------------------------------------------
Net Sales ................ $6,972.9 $7,091.1 $6,776.9 $6,407.3 $5,733.6
Restructuring Charge (2).. -- 250.0 -- -- --
Operating Profit ......... 793.5 543.1 741.8 753.6 673.4
Share of Net Income of
Equity Companies ........ 98.0 82.9 72.8 58.2 49.3
Income Before Cumulative
Effects of Accounting
Changes ................ 510.9 345.0 508.3 432.1 423.8
Net Income (1) (2) (3) (4) 510.9 135.0 508.3 432.1 423.8
Per Share Basis:
Income Before Cumulative
Effects of Accounting
Changes ............... 3.18 2.15 3.18 2.70 2.63
Net Income (1) (2) (3) (4) 3.18 .84 3.18 2.70 2.63
Cash Dividends Declared.. 1.29 2.07 1.52 1.36 1.30
Cash Dividends Paid .... 1.70 1.64 1.45 1.35 1.18
Total Assets ............. 6,380.7 6,029.1 5,704.8 5,283.9 4,923.0
Long-Term Debt ........... 933.1 994.6 874.7 728.5 745.1
Stockholders' Equity ..... 2,457.2 2,191.1 2,519.7 2,259.7 2,085.8
(1) Net income for 1993 includes a charge of $15.5 million
($.10 per share) for the effect of the enactment of the
1993 Tax Act.
(2) Results for 1992 include a pretax charge of $250.0 million
or $172.0 million after-tax ($1.07 per share) related to
the restructuring of the consumer and service products
operations in Europe and certain operations in North
America.
(3) Net income for 1992 includes net after-tax charges of
$210.0 million ($1.31 per share) for the cumulative
effects of adopting the required accounting rules for
postretirement health care and life insurance benefits and
for income taxes.
(4) Net income for 1991 and 1990 includes a favorable
adjustment of $20.0 million ($.13 per share) and a charge
of $44.0 million ($.28 per share), respectively, related
to the disposition of Spruce Falls Power and Paper
Company, Limited, a former 50.5-percent-owned Canadian
newsprint subsidiary.
PART II
(Continued)
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
The information under the caption "Management's Discussion and
Analysis" contained in the 1993 Annual Report to Stockholders
is incorporated in this Item 7 by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements of the Corporation and its
subsidiaries and independent auditors' report contained in the
1993 Annual Report to Stockholders are incorporated in this
Item 8 by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The section of the 1994 Proxy Statement captioned "Certain
Information Regarding Directors and Nominees" under "Proposal
1. Election of Directors" identifies members of the board of
directors of the Corporation and nominees, and is incorporated
in this Item 10 by reference.
See also "EXECUTIVE OFFICERS OF THE REGISTRANT" appearing in
Part I hereof.
ITEM 11. EXECUTIVE COMPENSATION
The information in the section of the 1994 Proxy Statement
captioned "Executive Compensation" under "Proposal 1. Election
of Directors" is incorporated in this Item 11 by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The information in the sections of the 1994 Proxy Statement
captioned "Security Ownership of Management" and "Other
Principal Holder of Voting Securities" under "Proposal 1.
Election of Directors" is incorporated in this Item 12 by
reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information in the sections captioned "Certain Transactions
and Business Relationships" and "Executive Compensation --
Compensation Committee Interlocks and Insider Participation"
under "Proposal 1. Election of Directors" of the 1994 Proxy
Statement is incorporated in this Item 13 by reference.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K
(a) DOCUMENTS FILED AS PART OF THIS REPORT.
1. Financial statements:
The Consolidated Balance Sheet as of December 31, 1993 and
1992, and the related Consolidated Income Statement and
Consolidated Cash Flow Statement for the years ended December
31, 1993, 1992 and 1991, and the related Notes thereto, and the
Independent Auditors' Report are incorporated in Part II, Item
8 of this Form 10-K by reference to the Financial Statements
contained in the 1993 Annual Report to Stockholders.
2. Financial statement schedules:
The following information is filed as part of this Form 10-K
and should be read in conjunction with the consolidated
financial statements in the 1993 Annual Report to Stockholders.
Independent Auditors' Report
Schedules for Kimberly-Clark Corporation and Subsidiaries:
V Property, Plant and Equipment
VI Accumulated Depreciation of Property, Plant and Equipment
VIII Valuation and Qualifying Accounts
IX Short-Term Borrowings
All other schedules have been omitted because they were not
applicable or because the required information has been
included in the financial statements or notes thereto.
3. Exhibits:
Exhibit No.(3)a. Restated Certificate of Incorporation of
Kimberly-Clark Corporation, dated April 16, 1987, incorporated
by reference to Exhibit No. 4e. of the Kimberly-Clark Corporation
Form S-8 filed on February 16, 1993 (File No. 33-58402).
Exhibit No.(3)b. By-Laws of Kimberly-Clark Corporation, as
amended April 22, 1993, incorporated by reference to Exhibit No.(3) of
the Kimberly-Clark Corporation Form 10-Q for the quarterly
period ended June 30, 1993.
Exhibit No.(4). Copies of instruments defining the rights of
holders of long-term debt will be furnished to the Securities
and Exchange Commission on request.
PART IV
(Continued)
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K
(Continued)
Exhibit No.(10)a. Kimberly-Clark Corporation 1976 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992.
Exhibit No.(10)b. Kimberly-Clark Corporation Management
Achievement Award Program, incorporated by reference to Exhibit
No. (10)b of the Kimberly-Clark Corporation Form 10-K for the
year ended December 31, 1990.
Exhibit No.(10)c. Kimberly-Clark Corporation Executive
Severance Plan, incorporated by reference from the Kimberly-
Clark Corporation Form 10-K for the year ended December 31,
1992.
Exhibit No.(10)d. Second Amended and Restated Deferred
Compensation Plan for Directors of Kimberly-Clark Corporation,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992.
Exhibit No.(10)e. Kimberly-Clark Corporation 1986 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992.
Exhibit No. (10)f. Kimberly-Clark Corporation 1992 Equity
Participation Plan, incorporated by reference to Exhibit No.
4A. of the Kimberly-Clark Corporation Form S-8 filed on June
26, 1992 (File No. 33-49050).
Exhibit No.(11). The net income per share of common stock
computations for each of the periods included in Part II, Item
6. Selected Financial Data, of this Form 10-K are based on
average common shares outstanding during each of the respective
periods. The only "common stock equivalents" or other poten-
tially dilutive securities or agreements (as defined in
Accounting Principles Board Opinion No. 15) in Kimberly-Clark
Corporation's capital structure during the periods presented were
options outstanding under the Corporation's Equity Participation Plans.
Computations of "primary" and "fully diluted" net income per
share assume the exercise of outstanding stock options under
the "treasury stock method." The table below presents the
amounts by which the earnings per share amounts presented in
Item 6 would be reduced if the "treasury stock method" had been
used.
Primary Fully Diluted
------- -------------
1993 $.01 $.01
1992 - -
1991 .02 .02
1990 .01 .01
1989 .01 .02
Exhibit No.(12). Computation of ratio of earnings to fixed
charges for the five years ended December 31, 1993.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K
(Continued)
Exhibit No.(13). Portions of the Kimberly-Clark Corporation
1993 Annual Report to Stockholders incorporated by reference in
this Form 10-K.
Exhibit No.(21). Consolidated Subsidiaries and Equity Companies
of Kimberly-Clark Corporation are identified in the 1993 Annual
Report to Stockholders, and such information is incorporated in
this Form 10-K by reference.
Exhibit No.(23). Independent Auditors' Consent
Exhibit No.(24). Powers of Attorney
(b) Reports on Form 8-K
(i) The Corporation filed a Current Report on Form 8-K dated
February 17, 1994, which reported the Corporation's 1993
audited financial statements and management's discussion
and analysis.
(ii) The Corporation filed a Current Report on Form 8-K dated
February 18, 1994 which reported the offering of
$100 million principal of debt securities by the
Corporation.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Kimberly-Clark Corporation
March 24, 1994
By: /s/ John W. Donehower
-----------------------------------------
John W. Donehower
Senior Vice President and
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and
on the dates indicated.
/s/ Wayne R. Sanders Chairman of the Board March 24, 1994
- ----------------------------
Wayne R. Sanders and Chief Executive Officer
and Director
/s/ John W. Donehower Senior Vice President and March 24, 1994
- ----------------------------
John W. Donehower Chief Financial Officer
/s/ Randy J. Vest Vice President - March 24, 1994
- ----------------------------
Randy J. Vest Controller (principal
accounting officer)
Directors
John F. Bergstrom Phala A. Helm, M.D.
James D. Bernd William E. LaMothe
Pastora San Juan Cafferty Louis E. Levy
Paul J. Collins Frank A. McPherson
Claudio X. Gonzalez H. Blair White
James G. Grosklaus
By: /s/ O. George Everbach
------------------------------------
O. George Everbach, Attorney-in-Fact March 24, 1994
INDEPENDENT AUDITORS' REPORT
Kimberly-Clark Corporation:
We have audited the consolidated financial statements of
Kimberly-Clark Corporation as of December 31, 1993 and 1992,
and for each of the three years in the period ended December
31, 1993, and have issued our report thereon dated January 28,
1994, which report includes an explanatory paragraph concerning
the Corporation's changes in its methods of accounting for
income taxes and postretirement benefits other than pensions to
conform with Statements of Financial Accounting Standards No.
109 and No. 106, respectively; such consolidated financial
statements and report are included in your 1993 Annual Report
and are incorporated herein by reference. Our audits also
included the consolidated financial statement schedules of
Kimberly-Clark Corporation, listed in Item 14. These
consolidated financial statement schedules are the
responsibility of the Corporation's management. Our
responsibility is to express an opinion based on our audits.
In our opinion, such consolidated financial statement
schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present
fairly in all material respects the information set forth
therein.
/s/ Deloitte & Touche
- ---------------------
DELOITTE & TOUCHE
Dallas, Texas
January 28, 1994
SCHEDULE V Kimberly-Clark Corporation and Subsidiaries
PROPERTY, PLANT AND EQUIPMENT
FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992
(Millions of dollars)
Balance at Balance Annual
Beginning Additions Other Changes- at End of Depreciation
Classification of Period at Cost(a) Retirements Add (Deduct)(b) Period Rates
- ----------------------------------------------------------------------------------------------------------------------
December 31, 1993
Depreciable property
Timberlands .................. $ 50.5 $ 1.8 $ .9 $ .1 $ 51.5 Various
Land improvements ............ 141.9 15.0 .5 11.1 167.5 2% - 10%
Buildings .................... 935.5 86.4 5.6 (11.8) 1,004.5 2% - 10%
Machinery and equipment ...... 4,049.5 565.9 140.6 (63.7) 4,411.1 3.5% - 20%
Furniture and fixtures ....... 261.1 44.9 8.9 (2.4) 294.7 5% - 20%
Autos, trucks and airplanes .. 139.5 23.5 12.2 (.5) 150.3 5% - 25%
Other depreciable property ... 17.1 9.5 2.1 (13.5) 11.0 4% - 20%
-------- ------- ------ ------- --------
Total - depreciable
property ................... 5,595.1 747.0 170.8 (80.7) 6,090.6
-------- ------- ------ ------- --------
Nondepreciable property
Land ......................... 43.1 27.1 .1 (.6) 69.5
Plant being constructed ...... 335.9 (119.6)(c) .2 (3.4) 212.7
-------- ------- ------ ------- --------
Total - nondepreciable
property ................... 379.0 (92.5) .3 (4.0) 282.2
-------- ------- ------ ------- --------
Total ..................... $5,974.1 $ 654.5 $171.1 $ (84.7) $6,372.8
======== ======= ====== ======= ========
December 31, 1992
Depreciable property
Timberlands .................. $ 48.6 $ 2.0 $ .1 $ - $ 50.5 Various
Land improvements ............ 135.1 11.6 .2 (4.6) 141.9 2% - 10%
Buildings .................... 903.2 60.0 3.5 (24.2) 935.5 2% - 10%
Machinery and equipment ...... 3,854.7 409.8 76.0 (139.0) 4,049.5 3.5% - 20%
Furniture and fixtures ....... 242.0 32.7 9.1 (4.5) 261.1 5% - 20%
Autos, trucks and airplanes .. 128.0 23.6 11.4 (.7) 139.5 5% - 25%
Other depreciable property ... 14.5 14.0 .3 (11.1) 17.1 4% - 20%
-------- ------- ------ ------- --------
Total - depreciable
property ................... 5,326.1 553.7 100.6 (184.1) 5,595.1
-------- ------- ------ ------- --------
Nondepreciable property
Land ......................... 40.4 3.6 .1 (.8) 43.1
Plant being constructed ...... 225.3 133.2(c) - (22.6) 335.9
-------- ------- ------ ------- --------
Total - nondepreciable
property ................... 265.7 136.8 .1 (23.4) 379.0
-------- ------- ------ ------- --------
Total ..................... $5,591.8 $ 690.5 $100.7 $(207.5) $5,974.1
======== ======= ====== ======= ========
(a) Amounts represent cash additions or capitalized interest on significant
construction projects. See Note 10 to financial statements.
(b) Includes reclassifications, transfers and currency effects of translating property,
plant and equipment at current rates under SFAS No. 52. 1992 includes gross
property written down as part of the restructuring charge. See Notes 1, 5 and 9 to
financial statements.
(c) Additions to plant being constructed are net of amounts reclassified to depreciable
property captions when construction projects are completed.
SCHEDULE V Kimberly-Clark Corporation and Subsidiaries
PROPERTY, PLANT AND EQUIPMENT
FOR THE YEAR ENDED DECEMBER 31, 1991
(Millions of dollars)
Balance at Balance Annual
Beginning Additions Other Changes- at End of Depreciation
Classification of Period at Cost(a) Retirements Add (Deduct)(b) Period Rates
- ---------------------------------------------------------------------------------------------------------------------
December 31, 1991
Depreciable property
Timberlands .................. $ 45.7 $ 3.0 $ - $ (.1) $ 48.6 Various
Land improvements ............ 116.2 18.8 .3 .4 135.1 2% - 10%
Buildings .................... 812.5 94.6 3.6 (.3) 903.2 2% - 10%
Machinery and equipment ...... 3,472.7 479.3 95.5 (1.8) 3,854.7 3.5% - 20%
Furniture and fixtures ....... 214.6 38.4 10.2 (.8) 242.0 5% - 20%
Autos, trucks and airplanes .. 123.8 9.7 5.5 - 128.0 5% - 25%
Other depreciable property ... 12.1 9.6 1.3 (5.9) 14.5 4% - 20%
-------- ------- ------ ------- --------
Total - depreciable
property ................... 4,797.6 653.4 116.4 (8.5) 5,326.1
-------- ------- ------ ------- --------
Nondepreciable property
Land ......................... 37.2 2.0 - 1.2 40.4
Plant being constructed ...... 353.2 (118.4)(c) - (9.5) 225.3
-------- ------- ------ ------- --------
Total - nondepreciable
property ................... 390.4 (116.4) - (8.3) 265.7
-------- ------- ------ ------- --------
Total ..................... $5,188.0 $ 537.0 $116.4 $ (16.8) $5,591.8
======== ======= ====== ======= ========
(a) Amounts represent cash additions or capitalized interest on significant
construction projects. See Note 10 to financial statements.
(b) Includes reclassifications, transfers and currency effects of translating property,
plant and equipment at current rates under SFAS No. 52. See Notes 1 and 5 to
financial statements.
(c) Additions to plant being constructed are net of amounts reclassified to depreciable
property captions when construction projects are completed.
SCHEDULE VI Kimberly-Clark Corporation and Subsidiaries
ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Millions of dollars)
Additions
Balance at Charged to Balance at
Beginning Costs and Other Changes- End of
Description of Period Expenses Retirements Add (Deduct)(a) Period
- -------------------------------------------------------------------------------------------------------------------
December 31, 1993
Timberlands ......................... $ 12.4 $ .7 $ - $ (.1) $ 13.0
Land improvements ................... 49.1 6.0 .2 1.5 56.4
Buildings ........................... 256.5 25.2 2.6 (2.7) 276.4
Machinery and equipment ............. 1,682.5 220.3 116.2 (23.4) 1,763.2
Furniture and fixtures .............. 132.9 26.7 6.3 (.9) 152.4
Autos, trucks and airplanes ......... 58.9 14.2 8.9 (.4) 63.8
Other depreciable property .......... 7.0 2.8 1.7 (3.3) 4.8
-------- ------ ------ ------ --------
Total ............................. $2,199.3 $295.9 $135.9 $(29.3) $2,330.0
======== ====== ====== ====== ========
December 31, 1992
Timberlands ......................... $ 12.0 $ .4 $ - $ - $ 12.4
Land improvements ................... 44.0 5.5 .2 (.2) 49.1
Buildings ........................... 242.0 23.8 1.9 (7.4) 256.5
Machinery and equipment ............. 1,504.5 215.6 57.9 20.3 1,682.5
Furniture and fixtures .............. 118.8 24.6 7.7 (2.8) 132.9
Autos, trucks and airplanes ......... 54.0 13.7 8.4 (.4) 58.9
Other depreciable property .......... 6.3 5.4 .2 (4.5) 7.0
-------- ------ ------ ------ --------
Total ............................. $1,981.6 $289.0 $ 76.3 $ 5.0 $2,199.3
======== ====== ====== ====== ========
December 31, 1991
Timberlands ......................... $ 11.6 $ .4 $ - $ - $ 12.0
Land improvements ................... 38.8 5.4 .1 (.1) 44.0
Buildings ........................... 223.1 22.5 2.8 (.8) 242.0
Machinery and equipment ............. 1,371.4 196.6 60.4 (3.1) 1,504.5
Furniture and fixtures .............. 104.7 22.9 9.2 .4 118.8
Autos, trucks and airplanes ......... 45.4 13.1 4.5 - 54.0
Other depreciable property .......... 6.7 4.6 1.0 (4.0) 6.3
-------- ------ ------ ------ --------
Total ............................. $1,801.7 $265.5 $ 78.0 $ (7.6) $1,981.6
======== ====== ====== ====== ========
(a) Includes reclassifications, transfers and currency effects of translating
accumulated depreciation of property, plant and equipment at current rates under
SFAS No. 52. 1992 includes reserves established as part of the restructuring
charge. See Notes 1, 5 and 9 to financial statements.
SCHEDULE VIII Kimberly-Clark Corporation and Subsidiaries
VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Millions of dollars)
Additions Deductions
---------------------- -------------
Balance at Charged to Charged to Write-Offs Balance at
Beginning Costs and Other and Discounts End of
Description of Period Expenses Accounts(a) Allowed Period
- ----------------------------------------------------------------------------------------------
December 31, 1993
Allowances deducted from
assets to which they apply
Allowances for doubtful
accounts ......... $10.2 $ 5.4 $.2 $ 7.8(b) $ 8.0
Allowances for sales
discounts ........ 7.1 97.0 - 97.3(c) 6.8
----- ------ ---- ------ -----
Total .......... $17.3 $102.4 $.2 $105.1 $14.8
===== ====== ==== ====== =====
December 31, 1992
Allowances deducted from
assets to which they apply
Allowances for doubtful
accounts ......... $ 8.2 $ 4.5 $.2 $ 2.7(b) $10.2
Allowances for sales
discounts ........ 5.8 96.7 - 95.4(c) 7.1
----- ------ ---- ------ -----
Total .......... $14.0 $101.2 $.2 $ 98.1 $17.3
===== ====== ==== ====== =====
December 31, 1991
Allowances deducted from
assets to which they apply
Allowances for doubtful
accounts ......... $ 7.1 $ 4.8 $ - $ 3.7(b) $ 8.2
Allowances for sales
discounts ........ 5.4 90.3 - 89.9(c) 5.8
----- ------ ---- ------ -----
Total .......... $12.5 $ 95.1 $ - $ 93.6 $14.0
===== ====== ==== ====== =====
(a) Primarily bad debt recoveries
(b) Primarily uncollectible receivables written off
(c) Sales discounts allowed
SCHEDULE IX Kimberly-Clark Corporation and Subsidiaries
SHORT-TERM BORROWINGS
FOR THE YEARS ENDED
DECEMBER 31, 1993, 1992 AND 1991
(Millions of dollars)
Maximum
Amount Average Weighted
Outstanding Daily Average
Weighted at any Amount Interest
Balance Average Month-End Outstanding Rate
Category of Aggregate at End of Interest During the During the During the
Short-Term Borrowings Period Rate Period Period(a) Period(b)
- --------------------------------------------------------------------------------------------
December 31, 1993
Holders of commercial paper .... $475.4 3.2% $475.4 $411.6 3.2%
Other short-term debt(c) ....... 79.7 10.8 96.8 91.6 12.3
------
$555.1
======
December 31, 1992
Holders of commercial paper .... $456.7 3.5% $456.7 $233.8 3.8%
Less commercial paper
refinanced(d) ................ (200.0) - - - -
Other short-term debt(c) ....... 75.8 13.4 96.0 81.5 13.1
------
$332.5
======
December 31, 1991
Holders of commercial paper .... $125.4 4.4% $225.8 $131.2 6.3%
Other short-term debt(c) ....... 97.7 12.8 121.1 91.8 12.2
------
$223.1
======
(a) The average daily amount outstanding was computed by
dividing the total of each month's average daily
balance by 12.
(b) The weighted average interest rates were calculated by
dividing interest expense on short-term borrowings by
average daily short-term borrowings.
(c) Primarily notes payable to banks made under credit
facilities which are renewable periodically. Other
amounts payable are not significant.
(d) At December 31, 1992, $200 million of commercial paper
was classified as long-term debt. In February 1993,
the Corporation issued $200 million of 7 7/8%
Debentures due February 1, 2023 and used the proceeds
to reduce commercial paper borrowings.
INDEX TO DOCUMENTS FILED AS A PART OF THIS REPORT
Description
-----------
Consolidated financial statements, incorporated by reference
Independent Auditors' Report, incorporated by reference
Independent Auditors' Report
Schedules for Kimberly-Clark Corporation and Subsidiaries:
V Property, Plant and Equipment
VI Accumulated Depreciation of Property, Plant and Equipment
VIII Valuation and Qualifying Accounts
IX Short-Term Borrowings
Exhibit No.(3)a. Restated Certificate of Incorporation of
Kimberly-Clark Corporation, dated April 16, 1987, incorporated
by reference to Exhibit No. 4e. of the Kimberly-Clark
Corporation Form S-8 filed on February 16, 1993
(File No. 33-58402)
Exhibit No.(3)b. By-Laws of Kimberly-Clark Corporation, as
amended April 22, 1993, incorporated by reference to Exhibit
No.(3) of the Kimberly-Clark Corporation Form 10-Q for the
quarterly period ended June 30, 1993
Exhibit No.(4). Copies of instruments defining the rights of
holders of long-term debt will be furnished to the Securities
and Exchange Commission on request
Exhibit No.(10)a. Kimberly-Clark Corporation 1976 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992
Exhibit No.(10)b. Kimberly-Clark Corporation Management
Achievement Award Program, incorporated by reference to Exhibit
No.(10)b. of Kimberly-Clark Corporation Form 10-K for the year
ended December 31, 1990
Exhibit No.(10)c. Kimberly-Clark Corporation Executive
Severance Plan, incorporated by reference from the Kimberly-
Clark Corporation Form 10-K for the year ended December 31,
1992
Index to Documents Filed as a Part of This Report
(Continued)
Description
-----------
Exhibit No.(10)d. Second Amended and Restated Deferred
Compensation Plan for Directors of Kimberly-Clark Corporation,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992
Exhibit No.(10)e. Kimberly-Clark Corporation 1986 Equity
Participation Plan, as amended effective May 1, 1987,
incorporated by reference from the Kimberly-Clark Corporation
Form 10-K for the year ended December 31, 1992
Exhibit No. (10)f. Kimberly-Clark Corporation 1992 Equity
Participation Plan, incorporated by reference to Exhibit
No. 4A. of the Kimberly-Clark Corporation Form S-8 filed on
June 26, 1992 (File No. 33-49050)
Exhibit No.(11). Statement re: computation of earnings per
share
Exhibit No.(12). Computation of ratio of earnings to
fixed charges
Exhibit No.(13). Portions of the Kimberly-Clark Corporation
1993 Annual Report to Stockholders incorporated by reference in
this Form 10-K
Exhibit No.(21). Consolidated Subsidiaries and Equity Companies
of Kimberly-Clark Corporation are identified in the 1993 Annual
Report to Stockholders, and such information is incorporated in
this Form 10-K by reference
Exhibit No.(23). Independent Auditors' Consent
Exhibit No.(24). Powers of Attorney